KHC Affordable Down Payment Assistance Program (Affordable DAP)

What is KHC Affordable Down Payment Assistance Program (Affordable DAP)?

KHC Affordable Down Payment Assistance Program (Affordable DAP) is a repayable second loan for homebuyers in Kentucky, administered by Kentucky Housing Corporation (KHC).

• KHC's Affordable DAP is the income-restricted, lower-rate tier of Kentucky Housing Corporation's down payment assistance offering, distinct from the standard Regular DAP. It provides a repayable second mortgage to help KHC first-mortgage borrowers cover down payment, closing costs, and prepaids. Unlike Regular DAP, Affordable DAP carries a 1 percent interest rate but applies additional Affordable DAP income limits.
• Down payment assistance.
• Closing cost assistance.
• Prepaids assistance.
• 1% fixed interest rate.
• Pairs with KHC first mortgage.
• Funding comes from Kentucky Housing Corporation.

How much assistance does it provide?

KHC Affordable Down Payment Assistance Program (Affordable DAP) offers up to $6,000 in assistance.

• Award tiers: Companion to Regular DAP (up to $12,500, 15-year, 4.75% on Future Homebuyers page); Affordable DAP is the 1% income-restricted tier.
• The program can be combined with KHC first mortgage; KHC Home Buyer Tax Credit (MCC).
• Amounts are the program's published maximums, not an offer — Kentucky Housing Corporation (KHC) determines any individual award.

Do you have to pay it back?

KHC Affordable Down Payment Assistance Program (Affordable DAP) is a repayable second loan and is repaid under the terms set by Kentucky Housing Corporation (KHC).

• Repayment is triggered by Repaid in monthly installments over the 10-year second-mortgage term.
• The assistance is recorded in Second mortgage position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

KHC Affordable Down Payment Assistance Program (Affordable DAP) is open to buyers who will live in the home as their primary residence.

What are the income limits?

KHC Affordable Down Payment Assistance Program (Affordable DAP) sets its income limit as follows: Affordable DAP income limits apply (more restrictive than Regular DAP); borrower must also meet KHC Secondary Market or Mortgage Revenue Bond income limits tied to the first mortgage. Specific dollar limits set by KHC and not published on the fetched pages.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

KHC Affordable Down Payment Assistance Program (Affordable DAP) caps the purchase price at $544,232.

• Eligible property types include Single Family.
• New construction is eligible.

Where does it apply?

KHC Affordable Down Payment Assistance Program (Affordable DAP) serves buyers purchasing anywhere in Kentucky.

How do you apply?

Applications for KHC Affordable Down Payment Assistance Program (Affordable DAP) go through Kentucky Housing Corporation (KHC), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Kentucky Housing Corporation (KHC) to reserve funds

   Funds are reserved through Reserved by KHC-approved lender through KHC loan reservation system, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.